Still Renting

Another Reason Why Inflation Is a Good Idea

So true. I used to say to my wife that if everyone spent their money the way we do, this economy would collapse in a week.

It's starting to look prophetic.

Do you REALLY need two gemstone covers for your cell phone?

On a side note, I was mentioning to a friend that a quality pair of jeans at Costco costs exactly $1 more than a lunch. He mentioned that, in the scheme of thongs, it would be cost effective to wear them until they need cleaning and then throw them away.

But that is why I love 'em so. I have six pair and DON'T throw them away. Nor do I eat lunch out any more.

Add bicycle commuting and a person can live in this economy on a pittance. I love it!


On Apr 07 10:34 AM Jimbo wrote:

> Some of us, who survived the last Great Depression, have never bought
> into the idea that you could buy something and then toss it away.
> I guess this is why our sons regard us as "cheap".

On Bubbles and Depressions

See my handle. And you explained why.

My wife was a real estate agent when they increased the allowable percentage of your income for your house payment to over 50%.

We knew something was fishy and, meanwhile, still pay $1,600 a month rent for a $525k house.

One in Ten Americans Receives Food Stamps?

My wife's husband died when she was in her late 20's. She was left with three children under the age of 7 and no insurance.

She reluctantly accepted food stamps until she got on her feet and then was very particular about what she actually bought..

She was on food stamps for 3 months.

That is what food stamps are supposed to be for. Too many see them as something different and long term. That hint's at the kernel of our problem.

Obama Just Pulled a 'Reagan' on the Automakers

He did not pull a Reagan.

From the article: "On August 5th 1981, President Reagan fired 11,345 air traffic controllers who were illegally on strike."

Key word: Illegally.

The president had power with the ATC's because they were under the government's jurisdiction and were ipso-facto- breaking the law.

We are supposed to be a nation of law. Obama can act when constitutional laws are violated, or he can give the automakers "strings attached" bailouts and then pull the strings, but that is about it.

It also is why so many banks were in a desperate race to give the money back.

Stephen Roach Abandons 'Economic Armageddon' Prediction

Suggesting that anything could be semi-post mortem now is like attempting to analyze the impact of the 1929 crash in January 1930. It didn't take into account July of 1932 nor December 7th, 1941.

This is still playing out, as the unwinding of last week's sucker rally is happening right now. Let's see where we are in a year.

Seven Uncomfortable Predictions for the Economy

Yep. I live in Seattle but I bought 13 acres in central Kentucky last October and a shotgun and lots of ammo (I already have an SKS and a thousand rounds I bought during Clinton's gun grab) last month. Also lust bought a calf. The previous owner still rents from me and he's taking care of the calf.

When we move out there I will put up my Galt's Gulch plackard.

This is gonna get very bad and this nation does not have the character it did in the 30's . The "crime" part is one I've been focusing on since 2007.




On Mar 30 08:53 AM epeon wrote:

> Buy your guns, run for the hills, plant a garden, start hunting deer.
> Damn, the appocalypse is at hand!!!

Congress' Handling of AIG Bonuses Is Shameful

Google REX 84


On Mar 26 09:25 AM 2houndz wrote:

>;;;
> Situations like this usually do not have a happy ending. How long
> before they are loading people on freight cars?
>

Congress' Handling of AIG Bonuses Is Shameful

The letter should have been signed "John Galt".

Is it Time to Jump Back into the Market?

How's that commercial RE bottom, which we are not even close to, gonna impact this? I agree that until the bad news is vetted, calling a bottom is a fools game.

A few major shopping mall bankruptcies/closures cannot help the market.

This is going to be an interesting spring/summer.

History Indicates a Bottom

When Reagan was elected, my brother pointed out that every president that won a presidential election on a year ending in zero (e.g. 1980) died in office.

He didn't.


One should err on the side of caution when using previous "similar on the surface" events to predict the outcome of current events. The devil is in the details, and the subtle fundamental differences.

Past performance does not guarantee future results.

Searching for a Housing Bottom? Look at New Sales Activity

Prariedog, interesting comment at the end. I live in Seattle and decided back in 2005 that it would not be prudent to buy in this market. I still think it isn't.

Yet I just bought 13 acres in central Kentucky. The 30 year house payments will be roughly the same as my monthly payments on my six year loan on my old Chrysler.

The price was so low that the property could continue to lose 75% of it's value and it would still be worth it to me. It is because I didn't buy it as an investment. I bought it because it is exactly where I want to live and I can afford it.

And as you pointed out. Central Kentucky aint San Diego or Seattle. It just didn't run-up and will almost certainly not have all that much of a run-down.

Simple, really.

Better to Rent than Buy a Home

I live in a Seattle suburb.

A divorce forced me out of my home of 20 years over a decade ago. When I finally had the money to buy a home, the shenanigans started with mortgages (50% of monthly income became ok for a house payment). Although I turned out to be premature and could have made a killing if I had done "timed buy and sell", I decided to rent. In ten years I have paid between $1,400 and $1,750 rent to live in houses, all with two car garages.

My current home (which I rent) costs me $1,600 a month. Zillow had it at $525k a year ago. It is the nicest of the homes I have lived in with five bedrooms and even has a 1/3 acre professionally landscaped yard with huge deck and a 500 sq ft out-building. It is 8 miles from my place of work and a beautiful bicycle commute on a new road complete with bike lanes.

The amount of money I am saving every month by renting is obsene. I'd be nuts to buy in this market. Give it a few years, assuming this thing does not end in a hot war, and it will be sweet indeed.

What Can We Learn from the 1930s?

A huge difference between now and the great depression is that we won't have people selling apples in the streets this time.

They cannot aford the price nor time commitment of the permit process.

Bulls Hold The Line - For Now

Regarding inventories: Once they are "worked through" with deep price cuts, I would certainly expect that replenishing them will be at a lower wholesale cost per unit than that of the existing inventories.

Team Obama vs. Team Reagan

When Obama forces busenessmen in the cities to grab a shovel and a pick and hop on a bus to the sticks to build an Autobahn, I'll know it's time to move.